Figure 4-22 The Wellness Clinic is considering a time-driven activity based costing system. Given the following data:
Refer to Figure 4-22. What is the activity rate for treating patients?
A) $35
B) $49
C) $21
D) $140

Question

Figure 4-22 The Wellness Clinic is considering a time-driven activity based costing system. Given the following data:
 Refer to Figure 4-22. What is the activity rate for treating patients?
A) $35 
B) $49 
C) $21 
D) $140

Quizplus · Accepted Answer

To calculate the activity rate (cost per unit of activity) for treating patients, we divide the total cost of the patient treatment activity ($98,000) by the total number of patients treated (2,000). $98,000/2,000 = $49 per patient. Therefore, the activity rate for treating patients is $49. Choice B is the correct answer.

Figure 4-22 the Wellness Clinic Is Considering a Time-Driven Activity